Meenakshi (India) Limited will hold its 44th Annual General Meeting (AGM) on September 28, 2026, to approve a 1:2 stock split and the appointment of an independent director. The meeting will be conducted through Video Conferencing or Other Audio-Visual Means (VC/OAVM).

The company published a newspaper advertisement on September 5, 2026, in Business Standard and Makkal Kural, disclosing the AGM details under Regulation 47 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Stock Split Details

The sub-division will double the number of outstanding shares while keeping the total share capital unchanged. This corporate action requires final approval from members at the 44th Annual General Meeting scheduled for September 28, 2026.

The company stated the rationale is to facilitate wider participation of investors and improve the accessibility of its equity shares. The sub-division is expected to be completed within prescribed timelines following member approval.

Director Appointment

Kedarisetty Naga Mahesh Kumar (DIN: 00176969) was appointed as a non-executive independent director not liable to retire by rotation. His term runs from September 28, 2026, to September 27, 2031.

Mr. Kumar brings over 50 years of experience in finance, taxation, and corporate governance. A Qualified Cost Accountant and MBA in Finance from Osmania University, he previously served as Chief Financial Officer of Spencer & Company Limited and spent more than 30 years with the RPG and RPSG groups. He satisfies the independence criteria under the Companies Act, 2013, and SEBI Listing Regulations.

AGM Logistics and Voting

The Board ratified the notice for the 44th Annual General Meeting to be held on Monday, September 28, 2026, at 12:00 noon. The notice includes two additional items of Special Business related to the stock split and director appointment.

Members will be provided with remote e-voting facilities. The Notice of the AGM along with the Annual Report for the financial year 2025-26 will be sent in electronic mode only to those Members whose e-mail IDs are registered with the Company or Depositories. The documents will also be available on the company’s website and the BSE and Calcutta Stock Exchange websites.

Members holding shares in physical mode are requested to register their e-mail IDs with the Registrar and Transfer Agent, Cameo Corporate Services Ltd, to participate in the AGM and vote electronically.

Key Dates for Shareholders

The company has specified the following timeline for record date and voting eligibility:

Voting rights shall be reckoned based on the number of equity shares held by members as on the cut-off date. Members can join the AGM via VC/OAVM at least 15 minutes before the scheduled time. Speakers must register between September 19 and September 21, 2026.

Meenakshi India reported a 153% year-on-year surge in net profit after tax to ₹713 lakh for the quarter ended June 30, 2026, driven primarily by substantial other income. While revenue from operations declined slightly by 3.4% to ₹3,224 lakh, the company’s core garment business achieved a critical milestone by turning its EBITDA positive at a margin of 3.4%, compared to a marginal loss in the corresponding quarter of FY26. This operational turnaround, combined with a debt-free balance sheet and strong liquidity, underscores a stabilizing trajectory for the Chennai-based apparel manufacturer.

The results were approved by the Board of Directors on August 5, 2026, following a limited review by statutory auditors in accordance with Indian Accounting Standards (Ind AS). The earnings conference call held on August 7, 2026, provided deeper insights into the financial composition, revealing that the bottom-line growth was significantly boosted by non-operational gains rather than pure top-line expansion. Management highlighted that while global tariffs posed headwinds, strategic pricing discipline and cost controls helped retain key customers and improve operational efficiency.

Financial Performance Breakdown

The company’s total income from operations stood at ₹3,936 lakh, up 5% year-on-year, but revenue from operations specifically was ₹3,224 lakh, down from ₹3,339 lakh in Q1FY26. The divergence between total income and operating revenue is attributed to significant other income. Profit before tax rose sharply to ₹763 lakh from ₹334 lakh in the prior year period. The effective tax rate was low at 6.6%, primarily due to unrealized fair value gains attracting minimal current tax until realization.

Operational Recovery and Margin Expansion

A key highlight of the quarter was the improvement in the garment segment’s operating profit, which jumped to ₹343 lakh from ₹28.24 lakh in Q1FY26—a 12-fold increase. This reflects better product mix, pricing discipline, and cost control. Cost of materials net of inventory changes improved to 45.7% of revenue, down from roughly 48% last year. Employee benefit expenses remained broadly flat year-on-year at ₹894 lakh, while other expenses declined by 7.3% to ₹747 lakh. Finance costs were negligible at ₹9.98 lakh, reflecting the company’s debt-free status.

Other income contributed ₹711 lakh, comprising an unrealized fair value gain on investments of ₹372.64 lakh, a net gain of ₹225.78 lakh from foreign currency forward contracts, and realized investment gains of ₹32.91 lakh. Management cautioned that these items are linked to market prices and may not recur in subsequent quarters.

Strategic Outlook and Capacity Expansion

Ashutosh Goenka, Chairman and Managing Director, emphasized that India is emerging as a preferred apparel sourcing destination due to structural shifts like the China Plus One strategy and new free trade agreements. The company plans to expand capacity from 18 lakh to 38 lakh pieces over the coming years. Capital expenditure is estimated at ₹40–50 crore by FY30, with one factory expected to be operational by FY28 at a cost of ₹20 crore.

To mitigate geopolitical risks, particularly regarding US tariffs, Meenakshi India has signed a memorandum of understanding for contract manufacturing in Sri Lanka. This arrangement allows the company to shift production origin if necessary, safeguarding customer relationships. Additionally, the company is exploring expansion into Nepal and Vietnam for future diversification. Domestic direct-to-consumer initiatives remain on hold due to patent issues with the brand SHORTSTOP.

What the Numbers Show

The disproportionate rise in net profit (153%) against a slight decline in operating revenue (-3.4%) indicates that the current profitability surge is heavily reliant on non-recurring other income rather than core operational scale. However, the normalization of core EBITDA margins to 3.4% is a positive signal, suggesting that the corrective measures taken during the tariff-disrupted period are yielding results. With a net worth of ₹142.65 crore and cash balances of approximately ₹80 crore, the company is well-positioned to fund its phased capacity expansion without leveraging its balance sheet.